Exam 2: The Measurement and Structure of the Canadian Economy

If the price index was 100 in 1991 and 120 in 2001, and nominal GDP was $360 billion in 1991 and $480 billion in 2001, then the value of 2001 GDP in terms of 1991 dollars would be

Say nominal GDP was $603.9 billion in 2001 and $572.3 billion in 2000, while the GDP deflator was 121.1 in 2001 and 117.7 in 2000. What was the growth rate of real GDP between 2000 and 2001?

Which of the following statements is true?

Which of the following statement is false?

Carl's Computer Centre sells computers to business firms. Businesses then use the computers to produce other goods and services. Over the past year, sales representatives were paid $3.5 million, $0.5 million went for taxes, $0.5 million was profit for Carl, and $10 million was paid for computers at the wholesale level. What was the firm's total contribution to GDP?

On January 1, 2001, the GDP deflator for Old York was 300, and on January 1, 2003, the GDP deflator had risen to 330.75. Based on this information, the annual average inflation rate for the two years was

GDP deflator is

The value added of a producer is the

By Marks buys a one-year German government bond (called a bund) for $400. He receives principal and interest totalling $436 one year later. During the year the CPI rose from 150 to 162. The nominal interest rate on the bond was ________, and the real interest rate was ________.

Nominal personal consumption expenditures in Canada were $1,72.4 billion in 1980 and rose to $399.3 billion in 1990. The implicit price deflator for personal consumption expenditures is 67 for 1980 and 118.6 for 1990, where 1986 is the base year. Calculate the percent change in real personal consumption expenditures (rounded to the nearest percentage point) in the decade.

The A company collects bushels of wild berries, which it sells for $2 million to the B company to be made into jam. The B company's wild berry jam is sold for a total of $6 million. What is the total contribution to the country's GDP from companies A and B?

Say that nominal GDP in 1990 was $1,015.5 billion, and in 2000 it was $2,732.0 billion. The GDP deflator is 42.0 for 1990 and 85.7 for 2000, where 1992 is the base year. Calculate the percent change in real GDP in the decade from 1990 and 2000. Round off to the nearest percentage point.

In 2001 national saving in the country of Polity was $85 billion, investment was $112 billion, and private saving was $114 billion. How much was the current account balance?

The government budget surplus equals

The fundamental identity of national income accounting tells us that

The national income accounts

If nominal GDP for 2000 is $6400 billion and real GDP for 2001 is $6720 billion (in 2000 dollars), then the growth rate of real GDP is

Citizens of the country of Heehaw produce hay and provide entertainment services (banjo playing). In 1998 they produced $15 million worth of hay, with $11 million consumed domestically and the other $4 million sold to neighbouring countries. They provided $7 million worth of banjo-playing services, $5 million in Heehaw and $2 million in neighbouring countries. They purchased $6 million worth of soda pop from neighbouring countries. Calculate the magnitudes of GNP, GDP, net factor payments from abroad, net exports, and the current account balance.

By Marks buys a one-year German government bond (called a bund) for $400. He receives principal and interest totaling $436 one year later. During the year the CPI rose from 150 to 162, but he had thought the CPI would be at 159 by the end of the year. By Marks had expected the real interest rate to be ________, but it actually turned out to be ________.

For 2002 Kwakian economy had the following nominal quantities (in billions of dollars) and price indexes (1997 = 100) for each category of expenditure: Nominal Value Price Index Consumption 423.1 125.1 Fixed investment 112.0 111.0 Government purchases 165.8 123.2 Exports 180.4 100.9 Imports 186.7 97.2 Change in inventories -3.28 111.0 a. Calculate the real quantity for each category (to one decimal point). b. Calculate nominal and real GDP. c. Find the implicit price deflator (1997 = 100).